Geometrically frustrated materials with kagome lattices have garnered significant research interest due to their unique topological properties and exotic magnetic behavior. Among these kagome materials, $\mathrm{C}{\mathrm{o}}_{2}{(\mathrm{OH})}_{3}\mathrm{Cl}$ stands out for its pronounced crystal field effect, which invokes the highly pursued exploration of the interplay among the crystal structure, coordination environment, and electronic behavior. In this paper, pure-phase $\mathrm{C}{\mathrm{o}}_{2}{(\mathrm{OH})}_{3}\mathrm{Cl}$ nanoparticles were successfully synthesized via a hydrothermal reaction. The morphology, crystal structure, and bonding characteristics were comprehensively characterized at ambient conditions. Low-temperature magnetic measurements revealed a ferromagnetic transition at $\ensuremath{\sim}10$ K. The structural evolution of $\mathrm{C}{\mathrm{o}}_{2}{(\mathrm{OH})}_{3}\mathrm{Cl}$ upon compression was further investigated using in situ high-pressure synchrotron x-ray diffraction (XRD). At 10.8 GPa, an anomalous negative compression occurs along the $c$ axis. A structural transformation from the initial rhombohedral to the monoclinic phase has been uncovered at 13.5 GPa, accompanied by a significant increase in bulk modulus. High-pressure Raman scattering and ultraviolet-visible absorption measurements indicated that the phase transition was driven by an increase in crystal field splitting energy ($\mathrm{\ensuremath{\Delta}}$), which enhanced the Jahn-Teller effect, altered the electronic configuration ($p\ensuremath{-}d$ hybridizations and $d\text{\ensuremath{-}}d$ transition) of $\mathrm{C}{\mathrm{o}}^{2+}$ ions, and potentially induced a transition from high- to low-spin states. In this paper, we provide insights into the mechanisms underlying structural transitions and electronic behavior in geometrically frustrated materials with kagome lattices under external pressures.